P&C Insurance
Main items of the P&C Insurance segment balance sheet
In the P&C Insurance business, payments are received from customers in exchange for a commitment to pay insurance claims in the future in case an insured event occurs. The company invests the funds it receives from customers and these funds are therefore the main asset in the company's balance sheet. The estimated amount of future insurance claims is shown on the balance sheet as liabilities for insurance contracts.
P&C Insurance balance sheet items in more detail
Investment assets include financial assets (such as shares and bonds), investments in real estate properties as well as cash and cash equivalents. Investment assets in P&C Insurance consist mainly of debt and equity securities. There are also smaller amounts of real estate property investments and other investments such as hedge funds and investments into commodity markets. The breakdown of the investment portfolio in P&C insurance is shown below:
Money market refers to debt securities with a maturity of less than one year and bonds to debt securities with a maturity of over one year.
Other investments include real estate properties as well as hedge funds and commodities.
Intangible assets are assets that cannot be physically measured and which are mainly created through time and/or effort. The main intangible asset in Sampo's balance sheet is goodwill that has been created as a result of mergers.
Other assets include such items as property, plant and equipment, tax assets, reinsurers' share of insurance liabilities and other items that are small in relation to total assets.
Liabilities for insurance contracts represent the net contractual obligations which the insurer has on the basis of insurance contracts. Insurance liabilities, consisting of the provisions for unearned premiums and unexpired risks and for claims outstanding, correspond to the obligations under insurance contracts.
The provision for unearned premiums is intended to cover anticipated claims costs and operating expenses during the remaining term of insurance contracts in force. In P&C insurance and reinsurance, the provision for unearned premiums is normally calculated on a strictly proportional basis over time.
The provision for claims outstanding is intended to cover the anticipated future payments of all claims incurred, including claims not yet reported to the company.
Financial liabilities item includes any financial liabilities (e.g. debt) the company has issued.
Other liabilities include a number of miscellaneous liabilities that are small in relation to the entire balance sheet. These include such items as tax liabilities, provisions, liabilities for employee benefits, etc.